Central Bank of Nepal Eyeing to Control Kumari Bank

Central Bank of Nepal is eyeing to take control over the management of Kumari Bank Ltd. as the conflict between the promoters does not seem to end. Former President Noorpratap Rana and member of the Board of Director Laxman Shrestha were having conflict regarding the control over management of the Bank. Both the fragment group wants to appoint their close person in CEO's post, after Surendra Bhandari, ex- CEO of the Bank had resigned. Later, Mr. Kapil Sharma was appointed as an acting CEO. Because of the clash, appointment of new CEO for the bank is yet to turn on. The ongoing conflict between the promoters has created turmoil over the deposits of the general people and to make it safe Nepal Rastra Bank have to intervene in the management of Kumari Bank Ltd, said NRB source. To solve the problem, Central Bank of Nepal had ordered Kumari Bank Ltd. to move out Noor Pratap Rana from its Board of director. But yet the NRB's order is not implemented. "The ongoing conflict within the board member and the promoter seems to end late. Therefore, Central Bank is liable to take control over the management to safeguard the deposits of the public", said higher ranked officer of the Central Bank. After controlling over the management of Kumari Bank, AGM will be conducted very soon to appoint the new management of the bank, he said. The board members of the KBL are in fragment. Central Bank had called the board member on dialogue and asked to settle down the dispute. Bank's board of director had sent a written letter to the Central Bank specifying no to clash on the issue anymore. The board has, Shivaratan Sharada as a president, and Amir Pratap Rana, Santu Shrestha, Shyamshan Rana, Jagdish Prasad Chaudhary, Shovakanta Dhakal, Rashendra Bahadur Malla and Noor Pratam Rana as a member. Central Bank had already taken control over the management of Nepal Bangladesh Bank, Bank of Kathmandu and Nepal Bank Ltd. and also recently liquidated Nepal Development Bank. The Kumari Bank has around Rs. 1.078 billion as a paid up capital, RS. 13 billion collected as deposits and invested Rs. 12 billion during the current fiscal year. It has earned Rs.170 million as a profit during the nine month of the current fiscal year, where as it had accumulated Rs. 144.90 million net profit during the corresponding previous year for the same duration.

Source: JNS